# Financial Market Depth as Mechanism

## Regression Results

| Model                                    | DV               |   Z_1_coef |   Z_1_se |      Z_1_p |    N |        R² |
|:-----------------------------------------|:-----------------|-----------:|---------:|-----------:|-----:|----------:|
| Z → financial_depth                      | financial_depth  |    122.043 |  107.905 |   0.258096 | 5358 | 0.174943  |
| financial_depth → gross_assets           | gross_assets_gdp |    nan     |  nan     | nan        | 5356 | 0.019055  |
| Z → gross_assets (no fin_depth)          | gross_assets_gdp |    275.808 |  495.429 |   0.577751 | 5744 | 0.0241341 |
| Z → gross_assets (+ fin_depth)           | gross_assets_gdp |    250.521 |  521.829 |   0.631188 | 5356 | 0.0399526 |
| Z → gross_assets (+ fin_depth + pension) | gross_assets_gdp |   6093.09  | 3878.24  |   0.116432 | 1172 | 0.0209857 |

## Mediation Analysis (Common Sample)

| Channel          | % mediated   |
|:-----------------|:-------------|
| Financial depth  | -8.7%        |
| Pension spending | -0.0%        |
| Both combined    | -8.7%        |